Govt. withdraws highway guarantee

The Serbian government has decided to withdraw the guarantee for the Alpine-Porr concessionaire, worth EUR 10mn, Politika reported.

Izvor: Politika

Sunday, 25.01.2009.

14:02

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The Serbian government has decided to withdraw the guarantee for the Alpine-Porr concessionaire, worth EUR 10mn, Politika reported. The Austrian consortium was to build the Horgos-Pozega highway, but the contract was broken last year. Govt. withdraws highway guarantee Now the latest government move means that the dispute over the concession will be resolved through international arbitration in Paris, the daily says. The two sides failed to agree on an out-of-court settlement. The Austrians are seeking EUR 5mn in damages, while the government is willing to pay EUR 640,000 for the consortium's expenses. All obligations stemming from the highway concession contract were made null on Dec. 31, since Alpine-Porr failed to financially secure the deal. Earlier the same month, the Austrians announced that they would pull out of the contract, citing serious violations of obligations on the part of Serbia. Politika quotes its sources who said that the government now believes the arbitration will "certainly have a favorable outcome for us". Their optimism is based on the fact that the concessionaire had failed to meet its basic obligation, that is, to provide the money for the project. The Austrians will base their case on accusations that the Serbian government has led a negative campaign against the project, sabotaging it by ignoring the correspondence sent to it, the newspaper says.

Govt. withdraws highway guarantee

Now the latest government move means that the dispute over the concession will be resolved through international arbitration in Paris, the daily says.

The two sides failed to agree on an out-of-court settlement. The Austrians are seeking EUR 5mn in damages, while the government is willing to pay EUR 640,000 for the consortium's expenses.

All obligations stemming from the highway concession contract were made null on Dec. 31, since Alpine-Porr failed to financially secure the deal. Earlier the same month, the Austrians announced that they would pull out of the contract, citing serious violations of obligations on the part of Serbia.

Politika quotes its sources who said that the government now believes the arbitration will "certainly have a favorable outcome for us". Their optimism is based on the fact that the concessionaire had failed to meet its basic obligation, that is, to provide the money for the project.

The Austrians will base their case on accusations that the Serbian government has led a negative campaign against the project, sabotaging it by ignoring the correspondence sent to it, the newspaper says.

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